Sunday, February 24, 2008

Reflections on the Stock Market Downturn

Every week-day morning the routine on board the SWAN OF TUONELA , is this: the alarm goes off at 6:00, Judy and I snuggle for about five minutes, I get up and go to the galley, put on water for tea, come back to the aft-cabin and dress and then return to the galley to fix breakfast while Judy gets dressed. Due to the small floor space in the aft cabin it is easier if one of us gets dressed at a time. Then I bring the complete breakfast back to the cabin and we eat in bed while watching the morning show on CTV. A great way to start the day.

This morning the main story news was, of course, the near melt-down of most of the stock markets around the world. There were interviews of many people, a couple of which advised folks to just hang on for the world wasn’t really coming to an end. Others had lost tens of thousands of dollars and were very upset. I could identify with both. Judy and I have investments too.

But I felt so lucky. Lucky that our priorities were such that stock market gains or losses have nothing to do with what is important to our present and future. The question I ask of events is this, “Will it change what I have for breakfast in the morning?”. If the answer is no, then the problem/possibility isn’t important enough to get in a fuss over. Let’s be honest. For a vast majority of the investors, the funds they have in the market represent future spending on wants, not needs. They have put their resources where they did in hopes of getting more return than in secure investments. I did too. But I doubt very much of even losing a third of their funds would change what they have for breakfast. What is more important is who you are having it with and if they look forward to each day.

Very few of us will voluntarily change our way of living although we know, beyond a doubt, that it would be much better for us and the world, in all ways. We live in a world of constant change. The stock markets are great examples of institutions that are based on whim, greed, winds of chaos and whim. We need to view “market adjustments” like those of this week, as much needed reminders of what is real and what is illusion, of what is really important and what isn’t, what are needs and what are wants. Sometimes it takes a hammer to awaken us.
If you’ve lost a bundle, relax. It’s money you’ve never seen. Enjoy your breakfast, hopfully, with a friend or five.

“Those who trust in their riches will wither.” - Jewish proverb

“All day long the wicked seek more wealth.” - Jewish proverb

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